Scrap for Corregated shipper

[Asked by Guest]

Dear Team,

this is for your information, we are using corrugate shipper for packing our finished goods product

now the question,can we pay excise duty while the same cleared as scrap.

so please give your opinion, on priority. we are clearing damage or old which is not fit to use corregated shipper as scrap without payment of duty.

also, please provide supporting rule or cases.

Thanks & regards,

Pradip Sirsat

AI Summary

Cenvat credit reversal required when packaging materials cleared as scrap, else duty liability and penalties may follow.
Availing CENVAT credit on packaging material triggers an obligation to reverse the equivalent credit when such material is cleared as scrap; practitioners recommend either a Chartered Engineer certificate showing nil market value or payment of duty on the transaction value, and warn that auditors may require reversal with interest and penalties if credit is retained while scrap is cleared without duty.